DJ Khaled and Floyd Mayweather escape charges in the ICO fraud case.
DJ Khaled is set to drop his new album, Father Of Asahd tomorrow at midnight but he has more to celebrate than just that. The US Court for the Southern District of Florida threw out a case involving Khaled and Floyd Mayweather‘s connection to a defunct cryptocurrency company called CentraTech as well as its initial coin offerings of CTR tokens. The SEC charged the company with fraud last April and in October, Khaled and Mayweather charged for promoting the product without disclosing they got paid from it. However, the two can breathe easy as the court has dismissed the case against them.
The court decided that Khaled and Mayweather’s role in promoting the company on social media wasn’t enough to warrant further legal action. “The Plaintiff’s complaint fails to establish that Mayweather [and Khaled] ‘successfully solicited’ the Plaintiffs to purchase CTR Tokens,” court documents state. Khaled and Mayweather both tweeted about the CTR tokens with the boxer telling his social media followers to join him.
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It was determined in court that the tweets were indirect and even more, it’s uncertain if the promotion even successfully made their followers purchase CTR coins. The only way they would be found guilty in this case is if it was proven they had a direct relationship with the defendant. However, there wasn’t any proof to establish that the pair had such association with them.
Last November, the US Securities and Exchange Commission fined Khaled and Floyd. The “I’m The One” mastermind paid $150K while Mayweather coughed up $600K in penalties.